Johnson & Johnson: Why I'm Cautious [View article]
Until this recent rally, JNJ has been in the $60-70 price range for the previous 5 years. If the fundamentals are there, I believe JNJ has what it takes to break away and eventually reach $100. I would look forward for JNJ to reach that level, as they have done splits when the stock stays above $100, the last being in 2001, so it is long overdue. Long JNJ.
ArcelorMittal: Medium-Term Trade And Long-Term Investment [View article]
XRT, thanks for your thorough response. I am for the most part a long term hold investor, but I tend to follow more the technology and healthcare sectors. You make a good case to start with a position with a long term outlook; I believe I am responding to moseslarsen as well.
ArcelorMittal: Medium-Term Trade And Long-Term Investment [View article]
XRT, I was prompted to read your article based on a suggestion made by a friend to buy some MT, as I believe he shares your position. However, what doesn't add up to me at this time is that the company is running at a loss and it had a huge debt burden that as the CFO has already indicated, they are striving to reduce. If your sector outlook is cautiously positive, I find difficult that cost containment will be sufficient to revert the trend, which could mean that the company has not bottomed out yet. Would you care to comment?
In its effort to shed its non-core businesses Johnson & Johnson (JNJ) is reportedly shopping its women's health unit. The unit, which competes with products from Procter & Gamble (PG), had world-wide sales of around $1.6B in 2012, which represents just a small percentage of JNJ's $67B in total sales over the same period. Still, with the right price tag, it's big enough to potentially pique the interest of private-equity buyers. [View news story]
Women's health products production is capital intensive and highly dependent on commodity prices. They are definitely not the cash cow they once were. If does make sense to sell the business to someone else with the economies of scale or the vertical integration as KMB or SCA, and take advantage of the strong equities JNJ brands have.
J&J Considers Diagnostics Sale, But Why Stop There? [View article]
Whereas it is uncommon to hear about JNJ divesting businesses, there is a longstanding tradition to divest businesses where they no longer hold a competitive edge and/or the competition from low end or generic versions ake it no longer as profitable. Some cases that come to mind are the Iolab intraocular lenses, the Dental Care resins and alloys (Dispersalloy), the Jelco catheters and the famous Dynamap monitors, once ubiquitous in most hospitals. If JNJ is looking to divest the Ortho Clinical Diagnostic business, it could easily be to look for greener pastures elsewhere. Long JNJ
Users are switching to smartphones at a very fast rate worldwide. If AAPL wants to maintain a solid position, this the THE move. NOK came to dominate the cell phone business for years by having a range of cheaper models that were ubiquitous in emerging economies. They are no longer a dominant force in the industry because they are an also-ran in smartphones. If AAPL does not make this move, they will eventually become a minor niche player in a market that will be dominated by Android based phones made by a myriad of manufacturers. It definitely is a bold an unusual move by AAPL, but if they want to remain a strong player in the smartphone business, it definitely is the right move.
Apple May Be Worth $1111, But Shares Won't Get There Anytime Soon [View article]
Adam, Very well thought article. You are bringing up an issue that is common of many large caps, and that is the large piles of cash stashed in foreign affiliates that sums up in the statements but never comes back home to avoid the tax hit. If there would be a tax holiday as you propose, this would not only impact AAPL, but the broad market as well. If would be interesting if you write an article about what could happen to the stck market in case all that hoardes of cash find it's way home with less or no tax. Thanks.
Why Wal-Mart Is Likely Dead Money For The Next 18 Months [View article]
You make a good point with WMT, but must confess I am most intrigued by your new position in Macy's. I was just looking at the 10 yr chart, and the stock is reaching the levels that had back in 2007. I was wondering what is your long term projection for the stock. Are you planning to write up an article on US retailers any time soon? Regarding WMT, it will eventually become attractive to enter again. I had a position long ago that I sold at a tidy profit. I do however own a position on a WALMEX fund I bought in Mexico after the corruption allegations. I strongly believe they will eventually prevail, bringing the value both for WALMEX and WMT
Banco Santander - Tough Bank Tender Offers [View article]
Michael, Last week I had the opportunity to her directly from BBVA executives in Mexico about the overall situation of the Spanish banking sector. They're we're very insistent about the fact that both BBVA and SAN are in hood shape. However, what I sensed from the discussion is that this is helped in great part by their non-Spain operations, especially Latin America. Having said that, I do believe your bullish long position can be right on I don't follow either bank on a regular basis, but would like your take on the upcoming SAN Mexico IPO, whether it is a good approach to invest in SAN, while they Improve in their Spanish operations. Long JPM
Why We're Big Fans Of Johnson & Johnson [View article]
It should be about time the stock truly breaks out of $70. It has been hovering in the $50-70 range since its last split in 2001. Traditionally JNJ splits its stock when it reaches $100 and stays above that level for good.
Has Microsoft Just Leapfrogged Apple? [View article]
Gutone, To reinforce your point on MSFT being a good copycat. Whoremembers now Visi Calc, Lotus 1-2-3, Harvard Graphics or WordPerfect to name a few? Office is the gold standard, but there weregreat predecessors that MSFT was able to push aside with theircopycat products riding on the coattails of Windows. Let AAPL and MSFT fight it out so better technology comes out ofboth of them. Meanwhile, companies such as RIMM, HPQ, DELLand NOKIA, either reinvent themselves, get bought out or simplyfold.
Long AAPL and MSFT
PS: Excel was first developed for Mac, back when all PC wereusing Lotus 1-2-3
At his company's much-speculated-upon L.A. event, Steve Ballmer introduces Microsoft Surface (MSFT), a home-grown Windows 8 tablet. The device is only 9.3mm thick and weighs 1.5 lbs. After all the rumors, it looks as if last week's scoops from The Wrap and AllThingsD were closest to the mark. (live blog) [View news story]
Nice features to compete with the ultra thin PC's, but would like to know more before passing judgment as to whether it will behave like a tablet. Characteristics such as battery life and device temperature will be critical if we would like to compare it to a true tablet. Also, there's no information in the blog on price.
Johnson & Johnson: Why I'm Cautious [View article]
ArcelorMittal: Medium-Term Trade And Long-Term Investment [View article]
ArcelorMittal: Medium-Term Trade And Long-Term Investment [View article]
If your sector outlook is cautiously positive, I find difficult that cost containment will be sufficient to revert the trend, which could mean that the company has not bottomed out yet. Would you care to comment?
Don't Bet On HP Doubling [View article]
In its effort to shed its non-core businesses Johnson & Johnson (JNJ) is reportedly shopping its women's health unit. The unit, which competes with products from Procter & Gamble (PG), had world-wide sales of around $1.6B in 2012, which represents just a small percentage of JNJ's $67B in total sales over the same period. Still, with the right price tag, it's big enough to potentially pique the interest of private-equity buyers. [View news story]
Long JNJ
J&J Considers Diagnostics Sale, But Why Stop There? [View article]
If JNJ is looking to divest the Ortho Clinical Diagnostic business, it could easily be to look for greener pastures elsewhere.
Long JNJ
Apple's Cheaper iPhone: Don't Panic! [View article]
If AAPL does not make this move, they will eventually become a minor niche player in a market that will be dominated by Android based phones made by a myriad of manufacturers.
It definitely is a bold an unusual move by AAPL, but if they want to remain a strong player in the smartphone business, it definitely is the right move.
2 Fast Growing Biotech Stocks With Recent Insider Buying [View article]
Apple May Be Worth $1111, But Shares Won't Get There Anytime Soon [View article]
Very well thought article. You are bringing up an issue that is common of many large caps, and that is the large piles of cash stashed in foreign affiliates that sums up in the statements but never comes back home to avoid the tax hit.
If there would be a tax holiday as you propose, this would not only impact AAPL, but the broad market as well.
If would be interesting if you write an article about what could happen to the stck market in case all that hoardes of cash find it's way home with less or no tax. Thanks.
Long AAPL
Why Wal-Mart Is Likely Dead Money For The Next 18 Months [View article]
Regarding WMT, it will eventually become attractive to enter again. I had a position long ago that I sold at a tidy profit. I do however own a position on a WALMEX fund I bought in Mexico after the corruption allegations. I strongly believe they will eventually prevail, bringing the value both for WALMEX and WMT
Banco Santander - Tough Bank Tender Offers [View article]
Last week I had the opportunity to her directly from BBVA executives in Mexico about the overall situation of the Spanish banking sector. They're we're very insistent about the fact that both BBVA and SAN are in hood shape. However, what I sensed from the discussion is that this is helped in great part by their non-Spain operations, especially Latin America. Having said that, I do believe your bullish long position can be right on
I don't follow either bank on a regular basis, but would like your take on the upcoming SAN Mexico IPO, whether it is a good approach to invest in SAN, while they Improve in their Spanish operations.
Long JPM
Why We're Big Fans Of Johnson & Johnson [View article]
Has Microsoft Just Leapfrogged Apple? [View article]
To reinforce your point on MSFT being a good copycat. Whoremembers now Visi Calc, Lotus 1-2-3, Harvard Graphics or WordPerfect to name a few? Office is the gold standard, but there weregreat predecessors that MSFT was able to push aside with theircopycat products riding on the coattails of Windows.
Let AAPL and MSFT fight it out so better technology comes out ofboth of them. Meanwhile, companies such as RIMM, HPQ, DELLand NOKIA, either reinvent themselves, get bought out or simplyfold.
Long AAPL and MSFT
PS: Excel was first developed for Mac, back when all PC wereusing Lotus 1-2-3
At his company's much-speculated-upon L.A. event, Steve Ballmer introduces Microsoft Surface (MSFT), a home-grown Windows 8 tablet. The device is only 9.3mm thick and weighs 1.5 lbs. After all the rumors, it looks as if last week's scoops from The Wrap and AllThingsD were closest to the mark. (live blog) [View news story]
Devon: Buy Before The Natural Gas Surge [View article]